Solved by verified expert :1. The ratification of the Sixteenth
Amendment to the U.S. Constitution was necessary to validate the Federal income
tax on individuals.
a. True
b.False
2.
Before the Sixteenth
Amendment to the Constitution was ratified, there was no valid Federal income
tax on individuals.
a.True
b. False
3.
The first income tax on individuals (after the ratification of the Sixteenth
Amendment to the Constitution) levied tax rates from a low of 2% to a high of
6%.
a. True
b.False
4.The
Federal income tax on corporations generates more revenue than the Federal
income tax on individuals.
a.True
b. False
5.
The pay-as-you-go feature of the Federal income tax on individuals conforms to
Adam Smith’s canon of convenience.
a. True
b.False
6.
Although the law is
complicated, most individual taxpayers are able to complete their Federal
income tax returns without outside assistance.
a.True
b. False
7.
The FICA tax (Medicare component) on wages is progressive since the tax
due increases as wages increase.
a. True b. False
8. The
Federal estate and gift taxes are examples of progressive taxes.
a. True
b.False
9.The
Federal excise tax on cigarettes is an example of a proportional tax.
a. True
b.False
10. Currently,
the Federal income tax is more progressive than it ever has been in the
past.
a.True
b. False
11. Mona inherits her
mother’s personal residence, which she converts to a furnished rent house.
These changes should affect the amount of ad valorem property taxes
levied on the properties.
a. True
b.False
12.A
fixture will be subject to the ad valorem tax on personalty
rather than the ad valorem tax on realty.
a.True
b. False
13.
Even if property tax rates are not changed, the ad valorem taxes imposed
on realty may not remain the same.
a. True
b.False
14. The ad
valorem tax on business use personalty is more often avoided by taxpayers
than
the
ad valorem tax on personal use personalty.
a.
True b. False
15.
Federal excise tax is no longer imposed on cosmetics.
a. True
b.False
16.The tax on
hotel occupancy is subject to both Federal and state excise taxes.
a.True
b. False
17.
The Federal gas-guzzler tax applies only to automobiles manufactured overseas
and imported into the U.S.
a. True
b. False
18.
Like the Federal
counterpart, the amount of the state excise taxes on gasoline do not vary from
state to state.
a.True
b. False
19. The states that impose a general sales
tax also have a use tax. a. True
b.False
20. Sales made
by mail order are not exempt from the application of a general sales (or use)
tax.
a. True
b.False
21. Two
persons who live in the same state but in different counties may not be subject
to
the
same general sales tax rate.
a. True
b.False
22.States
impose either a state income tax or a general sales tax, but not both
types of taxes.
a.True
b. False
23.
A safe and easy way for a taxpayer to avoid local and state sales taxes is to
have the purchase sent to an address in another state that levies no such
taxes.
a. True
b. False
24.On
transfers by death, the Federal government relies on an estate tax, while
states use only an inheritance tax.
a.True
b. False
25. An
inheritance tax is a tax on a decedent’s right to pass property at death.
a.
True b. False
26.
One of the major reasons for the enactment of the Federal estate tax was to
prevent large amounts of wealth from being accumulated within the family unit.
a. True
b.False
27.CHAPTER 1
AN INTRODUCTION TO TAXATION AND UNDERSTANDING THE FE27
Under Clint’s will, all of
his property passes to either the Lutheran Church or to his wife. No Federal
estate tax will be due on Clint’s death in 2011.
a. True
b.
False
